Not upheld: poor claims handling, delays, inadequate workmanship by contractors, communication failures complaint against Tesco Underwriting Limited
Financial Ombudsman decision DRN-6342062 of 2026-06-08T00:00:00+00:00. poor claims handling, delays, inadequate workmanship by contractors, communication failures complaint against Tesco Underwriting Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6342062 |
|---|---|
| Decision date | 2026-06-08T00:00:00+00:00 |
| Firm | Tesco Underwriting Limited |
| Product | Home insurance |
| Claim type | poor claims handling, delays, inadequate workmanship by contractors, communication failures |
| Outcome | Not upheld |
| Remedy | No further action required. Tesco has already paid £5,000 compensation, £21,496 towards legal fees, agreed to replace the hot tub, and covered additional costs incurred by Mr and Mrs P. |
Summary
Mr and Mrs P complained about Tesco Underwriting Limited's handling of a subsidence claim spanning from September 2018. Key issues included unsuccessful stabilisation works, poor contractor workmanship on flooring, inadequate mileage compensation, and legal fees. The ombudsman found that while Tesco's handling was poor, the firm took reasonable steps to remedy problems and paid £5,000 compensation plus additional amounts (£21,496 for legal fees and hot tub replacement) that exceeded normal expectations. The complaint was not upheld as Tesco had already provided fair remedies for the limited period under review (March to September 2025), and earlier complaints were time-barred.
The Ombudsman's reasoning
The ombudsman found that while Tesco's claims handling was poor in several respects, the firm took reasonable steps to remedy issues by arranging for contractors to address defects, offering monitoring options for subsidence concerns, and paying amounts beyond what was contractually required (hot tub replacement and legal fees). The ombudsman determined that complaints predating March 2025 were brought too late under FOS rules and could not be considered. For the period under review, the ombudsman concluded that Tesco's compensation payment of £5,000 plus additional payments for costs already made significantly exceeded what would normally be awarded, making further action unnecessary.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Tesco Underwriting Limited, all decisions | 742 | 40% |
| Home insurance, all decisions | 20,668 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website